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The balance sheet for December 31, 2012, and Decem...

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The balance sheet for December 31, 2012, and December 31, 2011, and the income statement for the year ended December 31, 2012, for Celtics, Inc., follow: Celtics, Inc. Balance Sheet December 31, 2012 and 2011 2012 2011 Assets Cash $ 25,000 $ 20,000 Accounts Receivable (net) 60,000 70,000 Inventory 80,000 100,000 Land 50,000 50,000 Building and Equipment 130,000 115,000 Accumulated Depreciation (85,000) (70,000) Total Assets $ 260,000 $ 285,000 Liabilities and Stockholders' Equity Accounts Payable $ 30,000 $ 35,000 Income Taxes Payable 4,000 3,000 Wages Payable 5,000 3,000 Current Notes Payable 50,000 60,000 Common Stock 110,000 100,000 Retained Earnings 61,000 84,000 Total Liabilities and Stockholders' Equity $ 260,000 $ 285,000 Celtics, Inc. Income Statement For the Year ended December 31, 2012 Sales $ 500,000 Expenses: Cost of Goods Sold 330,000 Selling and Administrative 90,000 Interest Expense 5,000 Total Expenses 425,000 Income Before Taxes 75,000 Income Tax Expense 30,000 Net Income $ 45,000 Note: Cash Dividends of $68,000 were declared and paid during 2012. Selling and Administrative includes Depreciation Expense of $15,000. Required: [One Sheet only] a. Prepare the complete statement of cash flows for 2012 in complete and good form. (For operating section use the indirect method) b Prepare cash flows from operations only, using direct method, and in good form. c Find "Cash Conversion Cycle" [See Fraser, 10e, p 204; use yearend B/S numbers & show work] d Determine FLI Comment on result.

 

Paper#7133 | Written in 18-Jul-2015

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